Pricing and revenue sharing strategies for Internet service providers | IEEE Conference Publication | IEEE Xplore

Pricing and revenue sharing strategies for Internet service providers


Abstract:

One of the challenges facing the networking industry today is to increase the profitability of Internet services. This calls for economic mechanisms that can enable provi...Show More

Abstract:

One of the challenges facing the networking industry today is to increase the profitability of Internet services. This calls for economic mechanisms that can enable providers to charge more for better services and collect a fair share of the increased revenues. In this papery we present a generic model for pricing Internet services that are jointly offered by a group of providers. We show that non-cooperative pricing strategies between providers may lead to unfair distribution of profit and may even discourage future upgrades to the network. As an alternative, we propose a fair revenue-sharing policy based on the weighted proportional fairness criterion. We show that this fair allocation policy encourages collaboration among providers and hence can produce higher profits for all providers. Based on the analysis, we suggest a scalable algorithm for providers to implement this policy in a distributed way and study its convergence property.
Date of Conference: 13-17 March 2005
Date Added to IEEE Xplore: 22 August 2005
Print ISBN:0-7803-8968-9
Print ISSN: 0743-166X
Conference Location: Miami, FL, USA

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